Direct deposit is a form of government-imposed payroll. Employers use it to pay their employees electronically, through bank accounts. As opposed to being paid straight from the paycheck, employers typically add funds to employees’ accounts through direct deposit.

Direct deposit is a method of banking where you can directly deposit a debit or credit card into your bank account. This method of banking allows you to cut out banks fees and costs by transferring funds into your account through a direct deposit. You can also set up automatic payments to ensure that you get paid whenever you need them.

You have several options for receiving your salary or fee payments: cash, checks, or electronic payments/wire transfers. Among the safest, most convenient and fastest is direct deposit. With your PODERcard bank account and debit card, you can benefit from receiving your money up to two days in advance when you set up your direct deposit.

What is direct deposit?

Direct deposit is a deposit of money by a payer directly into a payee’s bank account. For example, money could move from an employer’s bank account to an employee’s bank account.

This can be set automatically so both parties can leave it set without doing anything else. To achieve this, there is a chamber called the Automated Clearing House (ACH), which serves as a network to coordinate payments with financial institutions. Payments through this network are generally free and avoid benefits being charged.

Why is it better than checks or cash?

If you get paid by check, you may not see the money in your account for a day or two. Why? Because your bank must make sure the funds are available at your employer’s bank before settling you and accepting payment. On the other hand, with both cash and checks, you also run the risk of being lost, damaged or stolen. In fact, check fraud remains the most prevalent form of payment fraud.

Direct deposit offers you the following benefits:

  • SPEED: Receive your money faster.
  • SECURITY: It is process securely through digital channels.
  • FINANCIAL HEALTH: Helps you build better financial health into your life.

If you’re still unsure, consider that 82% of American workers receive their paychecks electronically as direct deposit because they trust it.

How does it work?

First, your employer gives us advance notice of the amount of your paycheck. Many employers notify the bank of payroll direct deposits 1-2 days before the “official” payday.

We then deposit your payment. If we receive advance notice that your money is coming, we will deposit your payment into your PODERcard account up to 2 days before payday or your government benefits up to 4 days before benefit day. Early direct deposit depends on deposit verification.

The main benefit this gives you is to avoid having to wait for payday. Compared to traditional banking policies, this gives you faster access to your funds.

What types of income or benefits can be directly deposit into my PODERcard account?

We deposit your payroll or government benefits into your PODERcard account, including:

  • Social Security benefits
  • Supplemental Security Income (SSI)
  • pension payments
  • Railroad Retirement Benefits (RRB)
  • Defense Finance and Accounting Service (DFAS) Payments
  • State unemployment benefits
  • Government disability benefits (Social Security Disability Insurance (SSDI) or workers’ compensation)
  • Veterans Benefits

How do I sign up for direct deposit?

Check with your employer. Simply ask them, “Do you notify the bank before I deposit my payment?” Note: They may not be consistent in the timing of their notices; therefore, if you receive it once, it is not guarantee that you will always receive it early.

Early availability is dependent on timing of payer payment instructions and fraud prevention restrictions may apply. As such, the availability or timing of early direct deposit may vary from pay period to pay period.


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